The market rebounded on Tuesday, snapping a two-day massive fall, as the bargain hunters put fresh bets on lucrative stocks taking the advantage of recent price erosion.
Market analysts said the stocks rebounded with renewed investors' optimism as aggressive sell-off was halted following the securities regulator intervention.
Bangladesh Securities and Exchange Commission on Monday ordered the suspension of 15 authorised traders for aggressively selling off shares of several companies as it created panic among investors.
The stock market regulator also asked the brokers, dealers, merchant bankers and asset management companies to take initiatives to make fresh investments through their own portfolios.
Following the previous two days' steep decline, the market plunged at opening and the key index fell 60 points within the first 20 minutes. But bargain hunters favoured taking a position in selective issues, eventually ending over 47 points higher.
DSEX, the prime index of Dhaka Stock Exchange (DSE), went up by 47.68 points or 0.73 per cent to settle at 6,530, after losing 102 points in the past two consecutive sessions.
Two other indices also ended higher with the DSE 30 Index, comprising blue chips, rising 26.43 points to finish at 2,436 and the DSE Shariah Index (DSES) advanced 14.72 points to close at 1,443.
Turnover, a crucial indicator of the market, also rose to Tk 5.99 billion on the country's premier bourse, climbing by 53 per cent over previous day's 12-month lowest turnover of Tk 3.90 billion.
Some institutional investors, including the state-run Investment Corporation of Bangladesh, supported the market from the front, despite most of the retail investors remaining on the sidelines, said a merchant banker, requesting anonymity.
However, global price instabilities due to the ongoing Russia- Ukraine conflict remain a concern over the future macroeconomic scenario of Bangladesh, he said.
"The investors got back their confidence considering the securities regulator's proposal to the brokers, dealers, merchant bankers and asset management companies to take initiatives to make fresh investments through their own portfolios," commented International Leasing Securities.
According to EBL Securities, stocks rebounded, but investors traded cautiously in absence of any clear indication of the market momentum.
"Some investors are still on the sidelines for upcoming earnings disclosures that will help them to assess the impact of price instabilities on company financials," said the stockbroker.
The investors' attention was mainly concentrated on miscellaneous, grabbing 16 per cent of the day's total turnover, followed by pharmaceuticals with 11 per cent and banking 9.0 per cent.
Major sectors posted gains with power generating the highest return of 1.80 per cent, followed by pharma with 1.20 per cent, cement 1.10 per cent, engineering 1.10 per cent, food 0.70 per cent, telecom 0.60 per cent and banking 0.40 per cent.
Gainers took a modest lead over the losers, as out of 378 issues traded, 195 advanced, 132 declined and 51 issues remained unchanged on the DSE trading floor.
Beximco topped the turnover chart with shares worth Tk 595 million changing hands, followed by Sonali Paper & Board Mills (Tk 248 million), Fortune Shoes (Tk 203 million), JMI Hospital Requisite Manufacturing (Tk 184 million) and Bangladesh Submarine Cable (Tk 171 million).
JMI Hospital Requisite Manufacturing was the day's top gainer, posting a 10 per cent gain further, while Aramit was the worst loser, shedding 1.99 per cent.
A total number of 154,304 trades were executed in the day's trading session with a trading volume of 138.34 million shares and mutual fund units.
The market-cap of DSE also rose to Tk 5,268 billion on Tuesday, up from Tk 5,229 billion in the previous session.
The Chittagong Stock Exchange (CSE) also rebounded with the CSE All Share Price Index - CASPI -gaining 101 points to settle at 19,231 and the Selective Categories Index - CSCX rising 61 points to close at 11,538.
Of the issues traded, 141 declined, 108 advanced and 31 issues remained unchanged on the CSE.
The port-city bourse traded 22.96 million shares and mutual fund units with turnover value of Tk 486 million.
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